This Amazon FBM guide explains how to sell on Amazon and ship orders yourself, step by step. FBM stands for Fulfillment by Merchant: you store the stock, pack each order, ship it and look after the customer. It is written for beginners and small businesses in any country who want a clear daily process before they take their first order.
If you are still choosing between FBM and Fulfillment by Amazon, that comparison deserves its own article. Here, the focus is on how FBM works once you have decided to use it.
What is Amazon FBM and how does it work?
With FBM, your products stay with you: at home, in a shop, in a small warehouse or with a fulfillment partner you hire. You list them on Amazon as normal. When someone orders, Amazon takes the payment and sends you the order details. You then pack the item, ship it, upload tracking and handle any questions or returns.
Who does what
- Amazon: runs the marketplace, shows your listing, takes payment and pays you after fees, and applies its customer protection rules.
- You: keep stock, set delivery times, pack and ship on time, provide tracking, answer buyer messages and process returns.
Because you control fulfillment, you also control packaging, inserts and how fast you work. That freedom comes with responsibility: Amazon measures your performance closely and expects you to deliver what your listing promises.
What you need before your first FBM order
- A Seller Central account in the marketplace where you will sell, with identity, bank and tax details verified. Compare the selling plans Amazon offers and their current fees.
- Products you are allowed to sell: some categories need approval, and some products have extra safety or labeling rules. Check before you list.
- A packing space that is clean, organised and close to your stock.
- Packaging supplies: boxes, mailers, protective fill, tape and a label printer.
- One or more carriers that deliver reliably to your customers and give tracking numbers.
- A returns address and a simple process for checking returned items.
- A stock tracking method, even a spreadsheet at the start, so Amazon never shows stock you do not have.
If you sell in the UAE, my Amazon UAE seller guide covers that marketplace as one local example. The FBM process below works the same way in most marketplaces.
Step 1: Set up shipping settings and handling time
In Seller Central, shipping settings (often called shipping templates) decide where you ship, how fast and at what price. Set these carefully, because they create the delivery promise the customer sees.
- Regions: choose the areas you can actually deliver to on time. Turn off remote regions if your carrier is slow there.
- Shipping speed: offer only the speeds you can meet every day, not just on good days.
- Shipping price: either charge shipping or build it into your product price. Check what your competitors show.
- Handling time: the number of business days between the order and dispatch. My advice: start with a realistic handling time and shorten it once your process is stable.
You can create different templates for different products, for example one for small parcels and one for heavy items.
Step 2: Create your FBM listings
When you create a listing or add an offer to an existing one, choose to fulfill it yourself (merchant fulfilled). Enter your SKU, price, quantity and the right shipping template.
A listing still needs strong content to sell. Find the words buyers use with my keyword research guide and my post on long-tail keywords, then improve your title, bullets and images using my Amazon listing optimization steps. With FBM, also be honest about size, weight and what is in the box, because you will handle every return yourself.
Step 3: Process and ship orders every day
Daily discipline is the heart of FBM. Here is a simple routine:
- Check new orders in Seller Central at fixed times each day. Unshipped orders are what you must dispatch next.
- Pick the items and check the SKU, variation and quantity against the order.
- Pack securely so the item arrives undamaged. Use the right box size to avoid extra carrier charges.
- Buy the shipping label. In many marketplaces you can buy labels inside Seller Central through Amazon’s Buy Shipping service, which adds tracking to the order automatically. You can also use your own carrier account.
- Confirm shipment with the carrier name and a valid tracking number before your handling time ends.
- Update stock so your available quantity on Amazon stays accurate.
Packing tips that prevent problems
- Keep the packing table organised and stock clearly labeled by SKU.
- Add a packing slip if useful, but never include messages that ask for positive reviews in exchange for anything. That breaks Amazon’s policies.
- Photograph high-value orders before sealing, so you have evidence if there is a dispute.
Step 4: Customer service, returns and claims
Buyers contact you through Amazon’s buyer-seller messaging. Reply quickly and politely; I recommend answering within 24 hours, including weekends if you can. Check Seller Central for Amazon’s current response expectations.
Your return policy must meet Amazon’s return rules for your marketplace. Set up your returns settings, check each returned item when it arrives, and refund promptly when the return qualifies.
If an order goes wrong, a buyer may file an A-to-z Guarantee claim. Respond with the facts: tracking, proof of delivery, photos and your messages. Many claims can be avoided simply by replying fast and solving the problem before the buyer escalates.
Seller performance metrics every FBM seller must watch
Amazon tracks your fulfillment quality in the Account Health section of Seller Central. The key metrics for FBM sellers include:
- Order defect rate: orders with negative feedback, A-to-z claims or chargebacks.
- Late shipment rate: orders confirmed as shipped after the handling time.
- Pre-fulfillment cancel rate: orders you cancel before shipping, often because of stock errors.
- Valid tracking rate: shipments with tracking that the carrier can confirm.
- On-time delivery: orders that arrive by the promised date.
Amazon sets target levels for these metrics, and missing them can limit your selling or affect your account. The targets can differ by marketplace and change over time, so check them in your Account Health dashboard, not in old blog posts.
Managing inventory, costs and growth
Keep stock in sync
Selling something you do not have leads to cancellations, which hurts your metrics. Update quantities after every order and every restock. If you also sell on your own website or other marketplaces, an inventory management tool that syncs stock across channels becomes important. If you are planning your own store, see my Shopify beginner guide.
Plan for holidays and busy periods
Seller Central has holiday settings that make your FBM listings temporarily unavailable when you cannot ship. Use them instead of missing your handling times. Before busy seasons, stock up on packaging and confirm carrier collection times.
Scaling up
- Standardise packaging for your best sellers so packing is fast.
- Use shipping software that connects to Amazon to print labels in bulk.
- Consider a third-party logistics (3PL) partner if order volume outgrows your space, while still fulfilling as a merchant.
- In some marketplaces, experienced FBM sellers can apply for Seller Fulfilled Prime, which has strict delivery standards. Check availability and requirements for your region.
Costs to track as an FBM seller
FBM avoids FBA fulfillment and storage fees, but it has its own costs. Amazon fees still apply, such as the referral fee on each sale and your selling plan fee. On top of that you pay for shipping labels, packaging, storage space, your time or staff, and returns. Fees and rates differ by marketplace and change over time, so check current figures in Seller Central and track your real cost per order. A product that looks profitable can lose money once shipping and packaging are counted.
Amazon FBM guide: daily checklist
- Seller account verified and products cleared for your categories.
- Shipping templates set with realistic regions, speeds and handling times.
- Listings marked as merchant fulfilled with accurate stock.
- Packing area, supplies and label printing ready.
- Carrier chosen, with valid tracking on every shipment.
- Fixed daily times to check and ship orders.
- Messages answered quickly and returns process written down.
- Account Health dashboard reviewed every week.
- Holiday settings used when you cannot ship.
- Cost per order tracked, including shipping and packaging.
Related guide: my Amazon FBA guide covers how Fulfilment by Amazon works, from shipping stock to fees.
Frequently asked questions
Can I use FBM and FBA at the same time?
Yes. Many sellers fulfill some products themselves and send others to Amazon. You can choose the fulfillment method for each offer in Seller Central.
Do FBM listings get the Prime badge?
Not by default. Prime is mainly linked to FBA. In some marketplaces, Seller Fulfilled Prime lets qualified merchants show Prime on orders they ship themselves, but it has strict requirements and is not available everywhere.
Can I ship FBM orders to other countries?
It depends on your shipping settings and the marketplace. If you ship internationally, you must handle customs paperwork, duties and longer delivery times, so set realistic delivery promises and check the official rules first.
What should I do if I run out of stock?
Set the quantity to zero straight away so new orders stop. Never accept orders you cannot ship within your handling time, because cancellations count against your metrics.
Conclusion: FBM rewards a steady routine
Fulfillment by Merchant gives you full control over stock, packaging and customer experience. To make it work, set honest shipping templates, ship every order on time with valid tracking, answer buyers quickly and watch your Account Health every week. Build those habits from your first order and FBM can grow with your business.
Written by
Uddhika Madhuranga Rodrigo
UAE-based digital marketing and e-commerce specialist with 10+ years of hands-on experience in Amazon Seller Central, Noon Seller Center, Shopify, WooCommerce, SEO, paid ads and analytics. I write practical guides for beginners and small businesses based on real work, not theory.